Consumer Protection Issues in the Mobile Marketplace
Posted on May 31, 2011 by Christopher Lee
Tags, Telecommunications and CUB Connects
On May 19, 2011, the Federal Trade Commission (FTC) released a press release summarizing its Prepared Statement on Consumer Protection Issues in the Mobile Marketplace to the Senate Committee on Commerce, Science and Transportation.
The prepared statement from the FTC was given by David Vladeck, Director of the FTC’s Bureau of Consumer Protection. The FTC press release states that, “while mobile technology, such as smart phones, is giving consumers a vast array of new products and services, it also presents new consumer privacy challenges,” and that “the FTC is committed to protecting consumers in the mobile marketplace, where vast amounts of data can be collected from consumers without their knowledge.” However the testimony also states that the FTC, “will continue to bring law enforcement actions where appropriate and work with industry and consumer groups to develop workable solutions that allow companies to continue to innovate and give consumers the new products and services they desire.” This testimony from the FTC highlights the importance of mobile privacy and why there is a need for developing stronger policy, but also brings up the issue of promoting innovation.
Creating a policy that balances privacy needs with innovation will not be an easy task. Even within the technology industry there is a wide range of approaches to internet privacy. According to these quotes from the FTC hearing, Apple has never collected location data from users and does not intend to. On the other hand, “Google’s business depends on protecting the privacy and security of our users” While some within the industry argue that consumer information is required for developing new technologies and mobile functions. For instance, Facebook issued a 29 page response to the FTC’s Proposal to Protect Privacy Online that was issued in December of 2010. As said in this Huffington Post article, “Facebook argued that web companies should be principally self-regulated so as not to stifle innovation” and “that the company is obliged by user demand to respect individual privacy.” Even within the tech industry, companies are as conflicted as the consumer.
Consumer privacy is clearly an important issue, which needs to be addressed. However, the wide range of opinions towards mobile privacy policy from consumers and within the tech industry will make it difficult to please everyone. Furthermore, new products and services are constantly being added to the marketplace, which complicates the landscape for developing adequate policy. Until suitable standards can be established, it is important for consumers to be aware of their online presence and mobile privacy.
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03/23/17 | 0 Comments | Consumer Protection Issues in the Mobile Marketplace